Chino Hills Municipal Code Ch. 5.32 Minor-Oriented Business Licenses

In adopting the provisions of this chapter, the City Council finds each of the following:

A. That certain businesses by the nature of their business cater to and attract children who may spend long hours in the business establishment without the presence of their parents or guardians or other adult customers;

B. That children spending long hours in such establishments are at risk of harm or danger and may be unable to effectively communicate or appreciate that harm or danger;

C. That such business establishments by complying with certain regulations would afford a more safe and healthy environment for children;

D. That persons who have been recently convicted of certain specified criminal acts can pose a bad influence on the character development of children and a possible physical threat when associating with minors for a substantial period of time without other responsible adults being present;

E. That some public and private entities involved in working solely with children when the children are unaccompanied by their parents or legal guardians require a licensing or background check of their employees to help ensure the safety of children and this chapter is a further effort in that regard;

F. That individuals owning and working at minor-oriented businesses should be licensed to prevent those who have been recently convicted of specified criminal acts which are of particular danger to children from exposing the children of Chino Hills to such harm or danger; and

G. That enactment of this licensing program is necessary to protect the public health, safety, or welfare because children are naturally attracted to such business establishments.

(Ord. 41 § 1 (part), 1993)

For purposes of this chapter, the words and phrases set forth below shall have the following meanings:

"Amusement arcade" means any business where four or more mechanical, electric, or electronic devices are located which device upon insertion of a coin, slug, or token in any slot or receptacle attached to such devices or connected there with, operates, or which may be operated for use as a game, contest, or amusement, through the exercise of skill or chance. This definition does not include a business where the devices present are only incidental to a different primary activity of the business.

"Comic book store" means any business whose primary activity is the sale of comic books.

"Minor-oriented business" means the following businesses where minors typically gather unaccompanied by adults: amusement arcades, comic book stores, video arcades, pinball arcades, penny arcades, and sport trading card stores.

"Owner" means the person who owns the minor-oriented business. If the business is owned by a corporation or partnership, owner includes every director, officer, controlling shareholder and partner who visits or works at the business premises.

"Penny arcade" means a public amusement business with various coin, slug, or electric or electronically operated game machines. Any establishment containing four or more such machines shall be considered a penny arcade for purposes of this chapter. This definition does not include a business where the devices present are only incidental to a different primary activity of the business.

"Pinball arcade" means any business wherein four or more machines are open to the public for use upon the payment of any form of consideration. Pinball shall include any game of chance whether operated electronically or mechanically which is predominantly a game of skill wherein the reward for successful playing is the opportunity to play additional games. This definition does not include a business where the devices present are only incidental to a different primary activity of the business.

"Specified criminal act" includes those crimes defined in the following sections:

1. Penal Code Sections 207, 220, 261, 266, 267, 272, 273(a), 286(c), 288, 288a(c), 313.1, Health and Safety Code Sections 11353, 11353.5, 11361 and 11380 and any other crimes requiring registration under Penal Code Section 290.

2. Specified criminal act also includes crimes in other states or jurisdictions that would be offenses under the preceding sections if committed in California.

"Sports trading card store" means any business whose primary activity is the sale or exchange of sports trading cards.

"Video arcade" means any business where four or more video game machines are open to the public for use upon the payment of any form of consideration. A video game machine is any mechanical, electrical, or electronic amusement device, which is characterized by the use of a cathode ray tube display and which upon insertion of a coin, slug, or token in any slot or receptacle attached to or connected to the machine, may be operated for use as a game, contest, or amusement. This definition does not include a business where the devices present are only incidental to a different primary activity of the business.

(Ord. 41 § 1 (part), 1993)

It is unlawful for any person to own a minor-oriented business open to the public in the city without having a valid license issued pursuant to this chapter. It is also unlawful for any person to be employed at a minor-oriented business during the hours it is open to the public without possessing a valid license therefor issued pursuant to the provisions of this chapter. Each applicant shall pay a minor-oriented business license fee as set by resolution of the City Council.

(Ord. 41 § 1 (part), 1993)

A. Before any applicant may be issued a minor-oriented business license, the applicant shall submit on a form to be provided by the City Manager, the following information:

1. The applicant's full legal name and any other names or aliases used by the individual within the last five years;

2. Age, date, and place of birth;

3. Height, weight, and color of hair and eyes;

4. Present business address and telephone number;

5. Proposed business address and telephone number;

6. Present residence address and telephone number;

7. State driver's license or identification number;

8. Social Security number;

9. A statement disclosing whether the applicant has ever been convicted of any specified criminal act and the date(s) of such criminal act and date(s) of release from prison, except those which have been expunged, sealed by Court order, or authorized or required to be kept confidential pursuant to Welfare and Institutions Code Sections 600—900;

10. A statement disclosing whether the applicant will visit or work at the business premises during the hours it is open to the public;

11. For owner applicants—Names and addresses of all employees who will work at the business premises;

12. Attached to the application form must be two color photographs of the applicant clearly showing the individual's face, and the individual's fingerprints on a form provided by the entity providing law enforcement services to the city. For persons not residing in the city, the photographs may be on a form from the law enforcement jurisdiction where the person resides. Any fees for the photographs and fingerprints shall be paid by the applicant; and

13. The application shall contain a declaration under penalty of perjury signed by the applicant declaring the truthfulness of the contents.

B. If the owner is a corporation or a partnership, a separate application shall be submitted for every director, officer, controlling shareholder, and partner who visits or works at the business premises.

C. Notwithstanding the fact that an application filed hereunder may be a public record under Government Code Section 6250 et seq., certain portions of such application contain information vital to the effective administration and enforcement of the licensing and/or permit scheme established in this chapter which is personal, private, confidential, or the disclosure of which could expose the applicant to a risk of harm. Such information includes, but is not limited to, the applicant's residence address and telephone number, the applicant's date of birth and/or age, the applicant's driver's license and/or Social Security number, convictions concerning specified criminal acts and/or personal financial data. The City Council in adopting the application and licensing and/or permit system set forth in this chapter has determined in accordance with Government Code Section 6255 that the public interest in disclosure of the information set forth above is outweighed by the public interest in achieving compliance with this chapter by ensuring that the applicant's privacy, confidentiality, or security interests are protected. The City Clerk shall cause to be obliterated from any copy of a completed license application made available to any member of the public, the information set forth above.

(Ord. 41 § 1 (part), 1993)

A. The City Manager, or his or her designee, shall refer the minor-oriented business license application to the designated head of the entity providing law enforcement services to the city for an investigation to be made of such information as is contained on the application. In no event shall the investigation or the decision to grant or deny the license include information authorized or required to be kept confidential in accordance with Welfare and Institutions Code Sections 600 to 900.

B. After an investigation, including obtaining the information pursuant to Section 5.36.030 of this code, the designated head of the entity providing law enforcement services to the city shall within ten (10) days of the receipt by the city of the application issue a report on the investigation results to the City Manager or designee who shall within such ten (10) day period issue such license unless:

1. The applicant will visit or work at the business premises during the hours it is open to the public and has been convicted of a specified criminal act for which:

a. Less than two years have elapsed since the date of conviction or the date of release from confinement, whichever is the later date, if the conviction is of a misdemeanor offense for a specified criminal act;

b. Less than five years have elapsed since the date of conviction or the date of release from confinement, whichever is the later date, if the conviction is of a felony offense for a specified criminal act;

2. An inspection of the business premises reveals that the regulations of Section 5.32.110 are not met.

C. In the event the information requested pursuant to Section 5.36.030 of this code is not available within such ten (10) day period, the designated head of the law enforcement entity providing police services to the city shall state the same in his or her report to the City Manager or the City Manager's designee. Whereupon, the City Manager, or his or her designee, shall within such ten (10) day period, if the application otherwise meets the requirements of this code, issue a license which states clearly on its face that the license is subject to revocation pursuant to Section 5.32.070 of this code.

D. Should the information obtained pursuant to Section 5.36.030 of this code reveal that the applicant has been convicted of a specified criminal act within the time periods of subsection (B)(1) of this section it shall be cause to deny or revoke the license, for any applicant who will visit or work at the business premises during the hours it is open to the public.

E. An employee who applies for a license to work at a business that is already lawfully operating under an owner's license will be issued a license immediately, provided he or she otherwise qualifies and the license is subject to revocation pursuant to subsection D above.

(Ord. 41 § 1 (part), 1993)

The minor-oriented business license granted pursuant to this chapter shall expire at the end of twelve (12) months from the date of its issuance, but shall be subject to annual renewal by the City Manager, or his or her designee, upon the written application of the license holder filed at least thirty (30) days prior to the license termination. The designated head of the entity providing law enforcement services to the city shall verify the information in the application concerning whether the licensee has been convicted during the year of committing any specified criminal act. The renewal of a minor-oriented business license shall be subject to payment of a fee as set by a resolution of the City Council.

(Ord. 41 § 1 (part), 1993)

Any license issued hereunder may be revoked by the city:

A. If the licensee visits or works at the business premises during the hours it is open to the public and has been previously convicted of a specified criminal act as provided in Section 5.32.050(D);

B. If the licensee is convicted of a specified criminal act;

C. If the licensee violates any of the regulations in Section 5.32.110.

(Ord. 41 § 1 (part), 1993)

When the City Manager, or designee, determines there are grounds to deny, refuse to renew, or revoke a license, he or she shall conduct an administrative hearing. The applicant or licensee shall be given at least three working days prior notice by telephone of the time and place of the hearing and the opportunity to rebut the determination concerning conviction of specified criminal acts or violation of Section 5.32.110. When proceeding to deny a license, the City Manager or designee shall before the end of the ten (10) day period from the date the application was filed with the city notify the applicant about the hearing and rebuttal rights. All hearings shall be held no sooner than three days, nor longer than five days, after the day notice is given, provided city and applicant may agree to a later date. After the hearing, written notice of the decision shall be given to the applicant or licensee.

(Ord. 41 § 1 (part), 1993)

A. If the City Manager, or his or her designee, denies, refuses to renew, or revokes a license, or denies an extension under Section 5.32.140 the City Clerk shall send to the applicant or licensee, by both certified mail, return receipt requested, and regular first-class mail, written notice of the action. The decision shall be effective five days after the notice of the decision has been deposited in the U.S. mail.

B. The decision may be appealed to the Planning Commission and subsequently to the City Council by filing a notice of appeal with the City Clerk prior to the date on which the decision becomes effective. A properly filed application for appeal stays any decision regarding the license until a decision is rendered on the appeal.

C. The appeal proceedings shall be conducted pursuant to Section 1.20.010 et seq. of this code and shall be before the Planning Commission or City Council as appropriate, except that the City Council, in its sole discretion, may appoint a hearing officer to conduct the hearing. All appeals will be decided within twenty (20) days of the date of filing. The decision of the City Council, or hearing officer, as the case may be, shall be final and shall be subject to California Code of Civil Procedure Section 1094.6.

(Ord. 41 § 1 (part), 1993)

Any license shall be immediately void if the licensee or holder attempts to transfer the license to another person or location. The attempted transfer of the minor-oriented business license includes the transfer of ownership or control of the business by any of the following:

A. The sale, lease, or sub-lease of the business;

B. The transfer of securities which constitute a controlling interest in the business, whether by sale, exchange, or similar means; or

C. The establishment of a trust, gift, or similar legal device which transfers the ownership or control of the business, except for transfer by bequest or other operation of law upon the death of the person possessing the ownership or control.

(Ord. 41 § 1 (part), 1993)

It is unlawful for the owner of a minor-oriented business to knowingly fail to enforce the following regulations governing the business premises:

A. The premises shall not be open for business after 11:00 p.m. on Sunday through Thursday nights and after 12:00 midnight on Friday and Saturday nights.

B. No smoking of tobacco products shall be allowed on the business premises and signs shall be posted to inform the customers of this prohibition.

C. No consumption or sale of alcoholic beverages shall be allowed on the business premises.

D. The owner or an employee who is at least twenty-one (21) years of age shall be present on the premises during all hours the business is open.

E. No employee nor the owner shall be on the premises during the hours it is open to the public who does not have a valid license issued pursuant to this chapter.

F. There shall be maintained on the premises all licenses issued for all employees, including the owner. These licenses shall be made available for inspection by authorized city employees during normal business hours.

(Ord. 41 § 1 (part), 1993)

A person who operates or causes to be operated a minor-oriented business without a valid license is subject to a suit for injunction as well as prosecution for criminal violations.

(Ord. 41 § 1 (part), 1993)

It is unlawful and a misdemeanor for any person to violate any provision of this chapter and shall subject the violator to punishment in accordance with Section 1.01.200 et seq. of this code.

(Ord. 41 § 1 (part), 1993)

Any owner of an existing minor-oriented business lawfully operating when this chapter becomes effective, shall be entitled to forty-five (45) days within which to obtain the license provided for herein before the provisions of this chapter are applicable to such owner. Any owner of such an existing business who is denied a license may request an administrative hearing pursuant to Section 5.32.080 to seek an extension from the City Manager, or designee, for up to one year based on grounds of economic hardship. The extension may be granted if adequate conditions may be imposed to achieve the objectives of this chapter.

(Ord. 41 § 1 (part), 1993)